Tasmanian chamber cleans up the books

Tasmania’s peak business lobby group has flagged the sale of its real estate holdings after a forensic accounting investigation discovered a “number of financial anomalies and undisclosed transactions".

The Tasmanian Chamber of Commerce and Industry is under pressure to release more detail on its finances, which will result in a predicted operating loss for the current financial year of about $800,000 instead of an expected loss of $100,000.

TCCI chairman Troy Harper has apologised to the chamber’s 2800 members and supporters along with the broader Tasmanian community, pledging a “refocus of activities to core support and advocacy" for the state’s business sector.

After he was appointed as the chamber’s chief executive two months ago, Mr Harper said that accountant Neil MacKinnon had told the board that the TCCI’s financial management, reporting and oversight were “not up to standard".

In response, Mr Harper sought an investigation by Deloitte, whose report was received last week and confirmed a series of concerns with the chamber’s accounts.

“While the board and management are working hard to reduce the loss by the end of the financial year, it will have consequences for the organisation," Mr Harper said in a statement on Friday.

“It will also see the sale of our real estate holdings.

“We are confident that we have set in process appropriate checks and balances to ensure such a situation does not occur again.

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Mr Harper told The Australian Financial Review yesterday that invoices for goods, services and inventory had been hidden but declined to specify on the grounds of wanting to avoid unnecessary involvement of the invoicees.

He said new memberships had been grossly overestimated and the reality was that the TCCI had ­suffered a decline in memberships.

The controversy comes ahead of the Tasmanian budget on May 17 and the TCCI has been arguing for better financial management from the state government, which is formed by Labor with support from the Greens.

The chamber’s 2010-11 financial report said it had property, plant and equipment worth about $1.75 million.

Mr Harper said the chamber’s Burnett Street headquarters in North Hobart would be sold. The chamber will consider relocating to a shopfront in Glenorchy or to Launceston.